Market Entry - Bangladesh API Market
About the Market
The API market is surging due to the increased demand for pharmaceutical drugs, which in turn is driven by the aging population, rising prevalence of chronic diseases such as cancer, diabetes, cardiovascular, neurological and infectious diseases. India and China are the major suppliers of APIs to North America due to their low production capacities, labor costs and the presence of a large number of global and domestic players. In order to cut down on expenses and increase profits, companies have begun outsourcing the creation of APIs to the developing countries in Asia, leading to growth in the Asian market. The safety of medication APIs are subject to stringent regulations and oversight from the country they are shipped to. Teva Pharmaceuticals Limited, Sun Pharmaceuticals Industries Limited, Dr. Reddy’s Laboratories Ltd., and Aurobindo are some key players in the market.
About the Geography
Bangladesh is the eighth most populous nation in the world, with a democratic government at its helm. The country is seen as extremely poor and under-developed, due to devastating natural disasters, and the socio-political instability. However, the country has the advantage of being in a strategic geographical position between South and Southeast Asia making it an entryway to both these markets.
The Bangladesh government is active ely seeking foreign investment, particularly in areas of energy and infrastructure. Many incentives are offered through industrial policy, growth strategy by exports and public-private partnership (PPP) program launched in 2009. The government’s strategic vision for 2021 plans growth through massive investment in infrastructure, skill development and trade. In general, there are no restrictions on foreign property or investment. However, four sectors remain restricted to the government, i.e., arms and ammunition, forest plantations, nuclear energy, and security printing.
Major challenges companies face is the lack of transparency in government procedures, a slow bureaucratic process associated with procurement practices, and corruption. However, a steady CAGR of at least 5.3% over the last 16 years, competitive labor force, large English-speaking base along with a strong consumer base, makes Bangladesh a popular choice among investors.
Recently, many developed Asian countries have outsourced their factory production, mainly textile, to Bangladesh owing to its low and efficient production capabilities.
GDP Annual Growth Rate
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(- 0.794 billion)
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The Market Entry Series
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